Operational Lines of Credit

Operational line of credit solutions

Operational lines of credit provide businesses with flexible access to capital to manage cash flow, working capital needs, and short-term financing gaps. These credit facilities help businesses smooth out revenue fluctuations, fund operational expenses, and take advantage of growth opportunities without the rigidity of a traditional loan.

Canopy enables financial institutions to model, issue, and manage revolving and non-revolving operational credit lines with customizable credit limits, repayment structures, and interest calculations.

Use Cases for Operational Lines of Credit

Revolving Line of Credit (Business & Corporate)

A flexible credit facility where businesses can draw funds as needed, repay, and re-borrow up to a predefined limit.
Features:

• Funds can be accessed on demand, with interest charged only on drawn amounts.
• Customizable repayment schedules (interest-only, minimum payments, or full balance).
• Dynamic credit limit adjustments based on utilization and risk factors.
• Supports floating interest rates, tiered APRs, or promotional pricing.

Try it out in your sandbox, refer to Postman collections in your partner workspace

Non-Revolving Line of Credit (Project-Based & Term Lending)

A structured credit facility that allows businesses to draw funds up to a limit, but once repaid, funds cannot be re-borrowed.
Features:

• Ideal for funding specific projects, seasonal needs, or short-term investments.
• Can be structured with milestone-based disbursements.
• Fixed or variable repayment terms with interest accruing on outstanding draw balances.
• Supports fee structures like drawdown fees, commitment fees, and origination fees.

Try it out in your sandbox, refer to Postman collections in your partner workspace

💡

Any of the above can also be secured with collateral to mitigate risk exposure. Check out our Secured Lending documentation and API endpoints to get started with secured lending